Genworth Disappoints But Creates A Long-Term Buying Opportunity

By Trade In Mexico:Genworth Financial, Inc. (GNW) shares plunged this week after the company announced it would postpone a long-awaited initial public offering for its mortgage insurance unit in Australia. It appears to be a wise decision to delay the IPO since Australia has been hit with major floods and higher levels of foreclosures recently, but investors hit the sell button and Genworth shares dropped almost 24% in a single day. The sell-off appears to be an overreaction and longer-term investors might want to consider using this as a buying opportunity. Genworth has been challenged by mortgage losses but it also has other lines of business and offers long-term care insurance and other financial service products. These businesses are doing well and remain profitable. Losses in the mortgage insurance division appear to be manageable and at least in the United States, the worst of the foreclosure crisis seems to be over. Recent dataComplete Story »

Related

By Trade In Mexico:Genworth Financial, Inc. (GNW) shares have dropped like a rock. Just a few weeks ago this stock was trading over $9 per share, but the company announced it would postpone an initial public offering for its mortgage insurance unit in Australia, and it reported lower than expected earnings.

Genworth Financial has more problems. In its latest annual report on Form 10-K filed with the SEC, Genworth Financial disclosed that it has identified a "material weakness" in its internal control over some financial reporting related to its long-term care insurance unit.

By Hawkinvest:Genworth Financial, Inc. (GNW) just announced financial results, as well as the resignation of CEO, Michael Fraizer. The company earned $47 million in the first quarter of 2012, or about 9 cents per share.

Genworth Financial Inc (GNW) stock has plunged more than 40% since the company reported third-quarter financials for the year. Around $3 billion of the company’s market value has been wiped out following the plummet in its stock price.

It’s been a tough day for Genworth Financial Inc (GNW).
The stock hit a 52-week low during trade today ($8.75), and is currently trading at $8.81, down 37% from close of trading yesterday. As of the last hour of regular trade today, 66.7 million shares have already exchanged hands, ten-fold the average daily trading volume of 4.64 million. This massive plunge in the stock price can be attributed to the quarterly earnings report the company released Wednesday.

The tables have turned on Genworth Financial Inc (GNW) in the latest quarter: the insurer posted a huge loss of $844 million. Since it reported quarterly results last week, the company's stock has plunged nearly 40%, hitting a 52-week low of $7.17.
Some 160 million shares have exchanged hands since the third-quarter earnings report, pulling down Genworth’s stock price. A “junk” rating by the credit rating agency Standard & Poor’s has made matters worse for Genworth.

By Hawkinvest:Genworth Financial Inc., (GNW) shares have surged in the past few months and the stock is even starting to look like a momentum play. Not long ago, investors soured on this stock and it hit a 52-week low of $4.06 on August 2. There were a number of reasons to be concerned since the company had released news earlier in the year that appeared worrisome.

By Hawkinvest:Genworth Financial Inc., (GNW) shares have been volatile for the past several weeks. Just a couple of months ago, this stock was hitting new 52-week lows at about $4 per share, but a recent rebound took the stock back over $6, just several days ago.

By Hawkinvest:Genworth Financial, Inc. (GNW) offers long-term care insurance, mortgage insurance and other financial products. This stock was hit hard as the company reported losses in the mortgage insurance division over the past couple of years. However, it appears that a clear, long-term uptrend is finally in place. While the stock is no longer near the 52-week lows, it still appears quite undervalued.